Obtaining a home warranty is important for securing peace of mind regarding the big purchase that is your home, so you’ll need to make sure the home warranty company you select is geared to protect you the way you want to be protected. Here are some things to consider:
What is and what isn’t covered by the home warranty policy is beyond important–this can and will vary greatly between policies. Read and understand the policy. Get everything in clear, concise writing, and if there’s anything you don’t understand, have it explained to you–twice. Or if you have special circumstances and objects, see if those can be covered and get that in explicit writing too. You also want to know to what level the coverage applies, i.e. full replacement value or current value. Anything that seems under-protected may require additional coverage in a separate policy of some sort. But be aware that additional coverage comes at an additional cost.
How a Claim Can Be Denied
While you hate to think about this prospect, it is important to understand what are the possible scenarios that will cause your claim to be denied. For example, not keeping up certain maintenance procedures on an appliance can cause your claim to be denied. Once you know the restrictions, you can work to set up your circumstances so this is least likely to happen.
Like every insurance policy, you’ll want to know what the service fee or deductible is, and you want to make sure that your home warranty company isn’t trying to gouge you with a high deductible that will effect each and every service call’s real value.
It’s important to have a quality, knowledgeable and reputable broker handling your warranty plan, so research this person and the home warranty company itself with the appropriate watchdog organization, like the Better Business Bureau. It’s important to make sure that you find ratings on the broker. You can also ask for referrals.
You’ll want the customer service at the company to be as transparent as possible. Nothing is more aggravating than difficult people who stand in the way of you filing your claim. You also want polite and helpful customer service. The bottom line is you want to get the best deal possible when acquiring a home warranty, and the reputation and attributes of the company greatly influence your ability to do this.